Jefferies readjusts European cable players, names NKT top pick

NKT A/S

07/10/2025 06:55

** Jefferies adjusts ratings for European cable manufacturers to account for longer term prospects, saying "very strong trends" in Q3 should drive an acceleration in near term growth for all players

** "We believe the near term strength is increasingly priced in and investors are turning to 2026e and beyond," says the broker

** Jefferies' top pick is NKT NKT.CO, which it upgrades to "buy" from "hold", expecting the Danish company to move past key risks and deliver the sector's fastest earnings growth and leading margins by 2028

** It downgrades France-based Nexans NEXS.PA to "hold" from "buy" citing lower visibility for the coming years

** It also flags risks related to Nexans' Great Sea Interconnector project, saying potential delays could put 75-100 million euros ($88-117 million) of annual EBITDA in jeopardy

** Jefferies maintains "buy" on Italy's Prysmian PRY.MI, noting its outstanding execution and exposure to U.S. data centre growth

($1 = 0.8555 euros)

(Reporting by Dimitri Rhodes)

((Dimitri.rhodes@thomsonreuters.com))